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Chapter 13 vocab

TermDefinition
cash flow per share
cash flows from financing activities The cash flows from transactions that affect the debt and equity of the company
cash flows from investing activities The cash flows from transactions that affect the investments in the noncurrent assets of the company
cash flows from operating activities The cash flows from transactions that affect the net income of the company
direct method A method of reporting the cash flows from operating activities as the =SUBTRACT (operating cash receipts - operating cash payments)
free cash flow operating cash flow available to a company after it buys PPE necessary =SUBTRACT (cash flows from operating activities - cash used to purchase PPE)
indirect method A method of reporting the cash flows from operating activities that begins with net income and adjusts for revenues and expenses that do not involve the receipt or payment of cash.
statement of cash flows A summary of the cash receipts and cash payments for a specific period of time, such as a month or a year
Created by: hellocookies
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